Local Content

To ensure delivery of the best goods, services and works for the Karachaganak operations we cooperate with a large number of contractors, vendors and counterparties both in Kazakhstan and worldwide. We acknowledge the impact of our presence in the West Kazakhstan region and contribute to local sustainability goals by developing local content and creating procurement opportunities.

KPO is one of the first companies in Kazakhstan that successfully introduced the Local Content Development Programme. KPO has an extensive supply chain with over 700 current suppliers with a pool of sub-contractors that perform a significant proportion of activities.

In 2019, KPO awarded contracts and contract amendments to 580 contractors and suppliers, of which 418 (72%) - local entities; 162 (28%) - foreign entities.

In 2019, KPO local content development initiatives have led to achieve the following results:

  • Local Content share in Karachaganak project reached 57% (US$ 683.5 mln) for 2019, as shown in the graph below.
  • 30% of total goods procured by KPO are locally produced (US$ 86 mln) with 11.9 % Local Content share confirmed by the SR-KZ Certificate.

Local Content Share in total KPO purchases of goods, works & services, 2017-2019